30 May 2024

How to build a financial wellbeing strategy that supports a multi-generational workforce

With up to five generations of employees in the workplace, building a financial wellbeing strategy that supports all workers, no matter their stage in life, is more challenging

Savings schemes, financial education and money management tools top the list of financial benefits wanted by employees who don’t already get financial support at work.

That’s according to a survey by Pluxee UK.

Pluxee interviewed more than 2,000 UK employees across the generations and more than 500 HR professionals, gathering research for its Money Mastery Guide. As part of the process, it spoke to employees who didn’t receive financial support at work, and here are the financial benefits they want:

Employee savings schemes (65%)
Access to money management tools (58%)
Access to financial education/advice (57%)
Access to financial coaches/advisors (57%)
A culture of openness where employees are encouraged to talk about financial concerns (51%)
Access to debt consolidation schemes/loans (45%)

It isn’t just the younger generations in need of education, however. Gen Z has been dubbed the most financially savvy generation, paying into multiple pensions and regularly setting money aside.

Student debt

That said, those starting on the career ladder have elements to consider that their older colleagues may not. Pluxee UK’s blog Welcoming the Younger Generation to the Workplace looks at the pros and cons of a global vs local financial wellbeing strategy, focusing on student debt around the world. It found that UK students graduate with the largest student loans out of all developed countries.

Loan repayment thresholds vary depending on the loan plan, but UK students on Plan 1 are expected to repay their student loans once earning £24,990 and above.

With data from 2023 suggesting that the average graduate starting salary was £25,000, many new workers will begin repaying their student loan the moment they get their first pay cheque.

Not all younger workers will start their working life with student debt. Still, with median statistics suggesting graduates generally earn £11,500 more than non-graduates annually, they may take home substantially less.

If this generation wants to set money aside for their future, their salary must stretch as far as possible, making day-to-day living more affordable, and this is where money-saving employee benefits are crucial.

While it’s clear Gen Z is already considering its future, even though their working lives have just started, what of Millennials, Gen X, and the Boomers still in the workplace?

The Covid-19 pandemic and subsequent cost-of-living crisis hit the younger generations harder, and one reason given for this is that those a little longer in the tooth had a savings pot to fall back on. The flip side is that with credit cards, mortgages and car loans, those aged between 45 and 54 also have the most debt.

Pluxee’s research found that 30% of the employees interviewed had no savings or emergency funds. With the high cost of living, debts owed, and bills to pay, many who had amassed a pot for the future have found themselves with much less than anticipated.

The common thread is clear, forming the basis of your multi-generational financial wellbeing strategy.

Employees want to feel empowered to make the best financial choices they can – today, tomorrow and in the future - which, first and foremost, calls for better guidance and education.

This all feeds into how they can get the most from life during work and retirement. Helping employees rid themselves of debt and set money aside is crucial here.

Each generation is looking to the future and the quality of life they can build for themselves, so making the present more affordable with employee discounts and cashback schemes is a must.